Short notes on the Right of re-sale (Sec. 54) of Unpaid Seller


An unpaid seller has a limited right of re-sale. When the unpaid seller has exercised his right of lien or stoppage in transit, he can resell the goods coming into his possession.

An unpaid seller has a right to resell the goods in the following cases:

(i) When the goods are of perishable nature.


(ii) In any other case, when he gives notice to the buyer showing his intention to re-sell the goods and the buyer does not, within a reasonable time, pay or tender the price.

(iii) When the seller expressly reserves a right of re-sale in case the buyer makes a default.

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